Fossil fuels are sub-prime assets, Bank of England governor warned?

And, since I’ve been cwuel to the septics, I suppose I ought to have a go at the greenies, for balance:

A false balance is abomination to the Lord: but a just weight is his delight.
— Proverbs 11:1

So (h/t KZ) the Grauniad says:

Open letter to Sir Mervyn King says overexposure to high-carbon assets by London-listed companies risks creating a ‘carbon bubble’… The huge reserves of coal, oil and gas held by companies listed in the City of London are “sub-prime” assets posing a systemic risk to economic stability, a high-profile coalition of investors, politicians and scientists has warned Bank of England’s governor, Sir Mervyn King.

Or just skip the Graun, and read the letter direct.

Weeeeellll: much as I’d like us to reduce our carbon emissions over the next few decades, I really don’t see us managing that by actively deciding not to burn usable assets, to a degree likely to substantially depress their price.

Or, put another way, if the great and the good and the green who signed that letter feel like risking their money by shorting the companies on their list, errm, I certainly won’t be joining them.

Refs

* A surprising call from the investment community